PT. AKR Corporindo, Tbk

PT Freeport Indonesia confirms construction of Smelter in JIIPE

July 15, 2021

  • PT Freeport Indonesia (PTFI) and PT Chiyoda International Indonesia (PTCII) officially sign EPC contract.
  • The Smelter will be a significant contributor to the recurring income for AKRA.
  • Further investment in downstream industries to boost demand for land, utilities, and other services in JIIPE

JAKARTA, July 16, 2021 – PTFI and PTCII have signed an estimated USD2.7bn EPC contract to build Copper Smelter and Precious Metal Refinery in Java Integrated Industrial and Port Estate (JIIPE).   The contract was signed in a ceremony attended by the top management of Free McMoran USA, Chiyoda Corporation Japan, Director General of the Ministry of Energy and Mineral Resources and MIND.   

The Smelter will contribute significantly to the recurring income of PT AKR Corporindo (AKRA), the majority shareholder of JIIPE.   Lease income will be generated by 103ha of land for Smelter and another 40-50ha for Laydown area.   Further recurring income will be generated by providing port facilities, electricity, gas, water, and waste-water treatment.   

The EPC contract covers smelter with capacity of 1.7mn tons of concentrate per year and Precious Metal Refinery.   This will be one of the world’s largest smelting capacity in the world.   It will attract investors to JIIPE from related industry to build a Supply Chain Eco-System for Electric Vehicles batteries, motors, and cables.     

JIIPE is one of Indonesia's largest public-private infrastructure projects covering 3000ha.  It was granted Special Economic Zone (KEK) status by President of Republic of Indonesia on June 28, 2021, with the objective of playing an integral role in the modernization of Indonesia's manufacturing and logistics capabilities (Industry 4.0).

The sheltered port and industrial city adjacent to Madura Island features one of the deepest ports in the region (-16 LWS) with four multifunction piers able to serve large vessels with more than 100,000 DWT.

It is also uniquely self-sustainable with an independent utility supply and new energy generation facilities capable of supplying up to 1200MW of power.  JIIPE is also well served by connecting transportation links connected by road and rail links and is situated just one hour from Surabaya International Airport.